Kenya Treasury bonds · auction of 26 September 2016
Kenya bond auction, 26 September 2016: FXD3/2016/005 at 13.112%
The Central Bank of Kenya's bond auction dated 26 September 2016 was a primary issue of FXD1/2016/020 and FXD3/2016/005.
Bids came to KES 56.5bn against KES 25.0bn on offer (226% subscribed), and the Treasury accepted KES 35.3bn.
FXD1/2016/020 cleared at 14.601%, against a 14.000% coupon, with 19.9 years to maturity.
FXD3/2016/005 cleared at 13.112%, against a 13.112% coupon, with 5.0 years to maturity.
What this means for KES 100,000 of FXD3/2016/005
Worked from the published result · information, not advice
KES 5,573 every six months, after tax, for 5.0 years
At this auction KES 100,000 of face value cost about KES 100,000 (price 100.000 per 100), and the yield that implies is 13.11% a year. The coupon is 13.11%: KES 13,112 a year on KES 100,000 of face value, paid in two halves, KES 11,145 after 15% withholding tax.
Held to maturity (2021-09-20), that is about KES 55,535 in coupons, plus KES 0 gain between what you paid and the KES 100,000 repaid; roughly KES 55,535 in all after tax.
Sold before maturity, the price moves with rates: if yields rise, the bond is worth less; if they fall, more. The Central Bank’s minimum bid is KES 50,000. Compare with bills, funds and deposits after tax →
Results
By bond
| Bond | Sale | Yield | Coupon | Years left | Bids | Accepted | Price /100 |
|---|---|---|---|---|---|---|---|
| FXD1/2016/020 | primary | 14.601% | 14.000% | 19.9 | KES 17.80bn | KES 12.29bn | 96.130 |
| FXD3/2016/005 | primary | 13.112% | 13.112% | 5.0 | KES 38.65bn | KES 23.05bn | 100.000 |
Source: Central Bank of Kenya result notice · the PDF these figures were read from
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